Annual percentage yield (APY) refers to the total amount of interest that you can earn on a deposit within one year. Because APY compounds, the APY on account will be slightly higher than the stated interest rate. In other words, you can earn interest on previously earned interest with APY. APY is important because it…
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What Is Employee Compensation: Types & How Compensation Plans Work
Employee compensation is what employees receive for services or work rendered at a company or business. While it typically refers to the money that workers get from employers, there are many forms of compensation for employees. Aside from wages and bonuses, it includes non-monetary items like stock options, company-assigned computers, and benefits (such as health…
What Is a Severance Agreement? A Guide for Small Businesses
A severance agreement is a contract between an employer and an employee that outlines the terms of a severance package upon employee separation. It covers various aspects, including financial compensation, benefits, confidentiality clauses, and non-disparagement agreements. Severance packages are generally a company perk—unless there’s an employment agreement or collective bargaining agreement that requires one upon…
What Is Agile Project Management: Types, Methods & Benefits
Agile project management (APM) is the process of breaking down projects into smaller, manageable sections to focus on the continuous improvement of a product or service. With this approach, teams enhance their speed and collaboration by repeatedly adjusting to changing feedback and requirements throughout the project life cycle. In this article, we explore what agile…
What Are Payroll Taxes & What Do Employers Pay?
Payroll tax is the sum of taxes that are withheld from an employee’s wages by employers. These taxes are directly remitted to the government and consist of Federal and State unemployment taxes, Social Security, and Medicare taxes. As a small business owner or payroll employee, understanding payroll taxes is non-negotiable. They play a substantial role…
What a Small Business Letter of Credit Is & How It Works
A letter of credit is issued by a bank or other financial institution as a way to guarantee payment in the event the customer does not pay. This can be especially useful when conducting business internationally or when making large complex purchases where failure to receive payment could result in cash flow issues. Companies that…
What Is User Presence? A Guide for Small Businesses
User presence is a feature that shows the status of connected users and co-workers within a communications platform. This technology is a unified communications as a service (UCaaS) application that recognizes when a specific IP address, user profile, or device is active on a network. This feature allows users to change and display their status…
What Are Employee Wellness Programs? A Small Business Guide
Employee wellness programs are designed to support the overall health and welfare of employees within a company. They often include a variety of activities and resources aimed at promoting physical, mental, financial, social, and holistic wellness. From fitness challenges and nutrition counseling to stress management workshops and mental health support, employee wellness programs offer a…